Microsoft CEO Nadella believes cloud business growth to continue

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Microsoft CEO Satya Nadella said he believes the company can continue to grow despite growing concerns about a global economic slowdown.

In an exclusive interview with Nikkei Asia, Nadella noted that the cloud business, which accounts for the majority of Microsoft’s sales, is “situated for more growth.” He emphasized that Microsoft differs from rivals Amazon.com and Google, whose businesses are “saturated.”

Nadella spoke with Nikkei reporters in Tokyo while visiting Japan.

Nadella said that even in the July to September period, when interest rate hikes and inflation were headwinds, the company’s cloud business sales rose more than 30%, year on year, after excluding foreign exchange effects. “There aren’t that many businesses that are over $100 billion [in annual revenue], growing at that rate in an economic environment like this,” he said.

Nadella said that the cloud is “still in the beginning to the intermediate time frame,” and emphasized that there is significant room for long-term growth in the business.

Nadella noted that the strength of Microsoft’s cloud business is its ability to offer a wide range of products, including infrastructure services like Azure and the business chat service Teams, to companies under one roof.

“Instead of buying 15 different subscriptions, [the customer can] get more value out of what you already have,” he said. By capitalizing on this, the company will be able to sustain growth, even during an economic slowdown, he added.

Read more via Nikkei Asia

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